Multiple Choice Question 127
In 2017 Wilkinson Company had net credit sales of $2250000. On
January 1, 2017, Allowance for Doubtful Accounts had a credit balance of $54000. During 2017, $90000 of uncollectible accounts receivable were written off. Past experience indicates that the allowance should be 10% of the balance in receivables (percentage of receivables basis). If the accounts receivable balance at December 31 was $600000, what is the required adjustment to the Allowance for Doubtful Accounts at December 31, 2017?
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